Credit: Gage Skidmore
Ahead of the Biden Administration’s release of guidance for the IRA’s 45X manufacturing production tax credit, U.S. Sen. Marco Rubio (R-FL) introduced the Protecting Advanced American Manufacturing Act, with a stated goal of prohibiting companies with ties to adversary countries like China from receiving American tax credits.
“We applaud Senator Rubio and Congresswoman Miller for introducing this important legislation to ensure that Chinese companies, which are already subsidized by the Chinese government, are not benefiting from billions of dollars in Inflation Reduction Act tax credits,” said Michael Stumo, CEO of the Coalition for a Prosperous America (CPA). “The Inflation Reduction Act is an important industrial policy aimed at reducing U.S. dependence on China while building out renewable energy manufacturing at home. It has already led to billions of dollars of investment in domestic U.S. solar production But the Inflation Reduction Act still has a serious loophole that allows China to reap its benefits. Congress must act to prohibit Chinese companies from receiving Inflation Reduction Act tax credits.”
The Protecting Advanced American Manufacturing Act would block the following from receiving credits:
- Any company that is owned, controlled by, operated by, under the substantial influence of, or organized under the laws of a foreign adversary;
- Any company whose equity interests are substantially held by a foreign adversary (10 percent or more);
- Any company whose management, ownership or operations are directly controlled by a foreign adversary; or
- Any company that is controlled by a foreign adversary through a “prohibited financial arrangement,” including: debt, lease or sublease agreements, management or operating arrangements, contract manufacturing arrangements, licensing arrangements, and financial derivatives.
News item from the Office of Sen. Marco Rubio
